violet_mead
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if anyone is confident with economics and would be kind enough to help me with my micro essay. Just to help me get the gist of the question and what i need to write in order to get a 1st
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MindMax2000
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What's the essay question?

Generally to get a first, you need to:

  • Do everything correctly (the basis of a 2:1)
  • Do a lot of critical thinking

If maths is involved, you just need to do the calculations and have the right answer.
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violet_mead
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(Original post by MindMax2000)
What's the essay question?

Generally to get a first, you need to:

  • Do everything correctly (the basis of a 2:1)
  • Do a lot of critical thinking

If maths is involved, you just need to do the calculations and have the right answer.
the question is;
Many government authorities, especially for big cities, go for what are called “rent control”
policies. The rents that landlords can charge for private flats (apartments) have to be in line
with government declared policies. In essence these act as price-ceilings for renting of these
privately-owned properties.
Discuss what you think are the effects of such policies. In particular what the efficiency
effects of such policies for the short run (when the number of rental properties are given) and
the medium/long run (when landlords can decide to take their property off the rental market
but also there is time to build new flats (apartments) if landlords (current and potential) want
to do so.
Finally, write a few lines on how any shortages or surpluses that may develop are usually
dealt with and their implications on the issue of efficiency in the rental market.
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MindMax2000
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The question is essentially about price ceilings using supply and demand. As the question is based on theory as opposed to using a case study, you will use abstract supply and demand models to illustrate your point. The diagrams can be standard, but you have to label and point out each aspect of the diagram.
The main effects I would mention include:

  • creation of supply shortages/excess demand, but lower prices for renters - think of New York's rent ceiling
  • in the long term, everything is flexible, so landlords can seek rent elsewhere
  • what will happen if the price ceiling is above/below equilibrium price?
  • What are the limitations of the model? e.g. ceterus paribus
  • What happened to New York's policies on rent ceilings?
  • Are price ceilings good overall? Deadweight?
  • What have other researchers or authors said about this?
  • Is there recent research on price ceiling policies? If so, what are their criticisms and positives? In what context has this been applied? Is this only applicable to property? How is it outside of property?
  • Are there situations or variations where these sort of policies work or proven not to work?
  • What questions did you raise that future research should look into? Is this important? Based on the above, do you have a weighted opinion?


I am guessing this is a first year essay question, so it's not anything too complex. Most of this will be stuff directly out of your economics textbook e.g. Principles of Macroeconomics and your lecture notes.
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wizzerd15
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(Original post by violet_mead)
if anyone is confident with economics and would be kind enough to help me with my micro essay. Just to help me get the gist of the question and what i need to write in order to get a 1st
Hi there..what level is your micro question? I'll see if i can help.
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Dominic254
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did you get help? if not hit my inbox
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violet_mead
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(Original post by wizzerd15)
Hi there..what level is your micro question? I'll see if i can help.
It's my first essay at first yr uni
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violet_mead
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(Original post by mindmax2000)
the question is essentially about price ceilings using supply and demand. As the question is based on theory as opposed to using a case study, you will use abstract supply and demand models to illustrate your point. The diagrams can be standard, but you have to label and point out each aspect of the diagram.
The main effects i would mention include:

  • creation of supply shortages/excess demand, but lower prices for renters - think of new york's rent ceiling
  • in the long term, everything is flexible, so landlords can seek rent elsewhere
  • what will happen if the price ceiling is above/below equilibrium price?
  • what are the limitations of the model? E.g. Ceterus paribus
  • what happened to new york's policies on rent ceilings?
  • are price ceilings good overall? Deadweight?
  • what have other researchers or authors said about this?
  • is there recent research on price ceiling policies? If so, what are their criticisms and positives? In what context has this been applied? Is this only applicable to property? How is it outside of property?
  • are there situations or variations where these sort of policies work or proven not to work?
  • what questions did you raise that future research should look into? Is this important? Based on the above, do you have a weighted opinion?


i am guessing this is a first year essay question, so it's not anything too complex. Most of this will be stuff directly out of your economics textbook e.g. Principles of macroeconomics and your lecture notes.
thankyou so much this has been a huge help!
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wizzerd15
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(Original post by violet_mead)
It's my first essay at first yr uni
Many government authorities, especially for big cities, go for what are called “rent control”
policies. The rents that landlords can charge for private flats (apartments) have to be in line
with government declared policies. In essence these act as price-ceilings for renting of these
privately-owned properties.
Discuss what you think are the effects of such policies. In particular what the efficiency
effects of such policies for the short run (when the number of rental properties are given) and
the medium/long run (when landlords can decide to take their property off the rental market
but also there is time to build new flats (apartments) if landlords (current and potential) want
to do so.
Finally, write a few lines on how any shortages or surpluses that may develop are usually
dealt with and their implications on the issue of efficiency in the rental market.

Effects of such policy - positive( social equity - price ceiling to make it affordable for low income households as the rent is below market rate) , however, it creates the negatives (market inefficiency) - shortage of apartments , i.e. yes they are 'cheaper' but they are not available - may lead to black market pricing. - which is a form of deadweight loss as it lowers the total surplus. This needs enforcement by the authorities which would be unnecessary if the apertments are priced at market rate.
Government would have to carry measures such as rationing to minimise the impact of shortages- again involves cost leading to deadweight loss
This requires cost benefit analysis to weigh the net impact of equity and efficiency.
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timleebcu
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Have a look at Urban Land Economics (Harvey and Jowsey), I have the sixth edition (I think that's the current one) and the chapter on housing talks about the rent control we've had in the past in the UK
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violet_mead
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(Original post by wizzerd15)
Many government authorities, especially for big cities, go for what are called “rent control”
policies. The rents that landlords can charge for private flats (apartments) have to be in line
with government declared policies. In essence these act as price-ceilings for renting of these
privately-owned properties.
Discuss what you think are the effects of such policies. In particular what the efficiency
effects of such policies for the short run (when the number of rental properties are given) and
the medium/long run (when landlords can decide to take their property off the rental market
but also there is time to build new flats (apartments) if landlords (current and potential) want
to do so.
Finally, write a few lines on how any shortages or surpluses that may develop are usually
dealt with and their implications on the issue of efficiency in the rental market.

Effects of such policy - positive( social equity - price ceiling to make it affordable for low income households as the rent is below market rate) , however, it creates the negatives (market inefficiency) - shortage of apartments , i.e. yes they are 'cheaper' but they are not available - may lead to black market pricing. - which is a form of deadweight loss as it lowers the total surplus. This needs enforcement by the authorities which would be unnecessary if the apertments are priced at market rate.
Government would have to carry measures such as rationing to minimise the impact of shortages- again involves cost leading to deadweight loss
This requires cost benefit analysis to weigh the net impact of equity and efficiency.
Thankyou! this has helped me get the gist of the question alot
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Lillie_t_4
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(Original post by wizzerd15)
Many government authorities, especially for big cities, go for what are called “rent control”
policies. The rents that landlords can charge for private flats (apartments) have to be in line
with government declared policies. In essence these act as price-ceilings for renting of these
privately-owned properties.
Discuss what you think are the effects of such policies. In particular what the efficiency
effects of such policies for the short run (when the number of rental properties are given) and
the medium/long run (when landlords can decide to take their property off the rental market
but also there is time to build new flats (apartments) if landlords (current and potential) want
to do so.
Finally, write a few lines on how any shortages or surpluses that may develop are usually
dealt with and their implications on the issue of efficiency in the rental market.

Effects of such policy - positive( social equity - price ceiling to make it affordable for low income households as the rent is below market rate) , however, it creates the negatives (market inefficiency) - shortage of apartments , i.e. yes they are 'cheaper' but they are not available - may lead to black market pricing. - which is a form of deadweight loss as it lowers the total surplus. This needs enforcement by the authorities which would be unnecessary if the apertments are priced at market rate.
Government would have to carry measures such as rationing to minimise the impact of shortages- again involves cost leading to deadweight loss
This requires cost benefit analysis to weigh the net impact of equity and efficiency.
hi, sorry
just wanted to ask, are these postive and negative effects relating to the short term or long term effects?
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wizzerd15
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(Original post by Lillie_t_4)
hi, sorry
just wanted to ask, are these postive and negative effects relating to the short term or long term effects?
Short term to medium term effects
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